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Currency Majors Technical Perspective

Ian G Coleman from FXstreet.com Independent Analyst Team at 02/10/10


EURUSD Current price: 1.3759

You can never say it is going to be a quite day on the currency markets, especially with all the uncertainty in Europe. We had a spokes person from Germany saying they are looking at a package to bail out Greece, only to deny it later. This sent the markets flying higher. EURUSD daily chart we can see a large green with a spike at the rejection area. We have since drifted lower overnight. In the last hour we have shown some support at 13742 which was the break out line (forming a hammer bottom). We are still in the ascending channel and the move lower had not breached 13715, so an Elliott Wave is still alive. If this is the case we should expect a rally from around this level, taking us first to 13825 (200 SMA and the trend line) then up to 13925. This would be close to 38.2% of the last move down. A break through 13714 and we could see the lows again at 13580. German meeting at approximately 7.00 GMT

Support levels: 1.3742 1.3718 13643

Resistance levels: 1.3775 1.3802 1.3825

GBPUSD Current price: 1.5675

GBPUSD ranged in the morning then broke out on the news. We have come back to test the support line now at 15661 and, for the last two hours, have formed two dojis. The move down overnight looks corrective and with the RSI holding above 50 I think we may pull higher from here. We have a descending trend line at 15700 at the moment. An ABC correction would take us up to 15845. This would line up with the 200 SMA. A break through support and we could see the lows again at 15559

Support levels: 1.5661 1.5630 1.5559

Resistance levels: 1.5700 1.5732 1.5749

USDJPY Current price: 89.64

The daily chart we had three doji days then a large green from yesterday giving a slight bullish bias. 1 HR and the 200 SAM shows how flat the market has been. We are holding an ascending trend line that is currently at 8950. A push through 8978 again and we have 9000 big figure and 200 SAM next. A break here and 9067 trend line should cap the move for the time being

Support levels: 8950 8900 8850

Resistance levels: 8978 9000 9050

USDCHF Current price: 1.0661

OK, we got or break and the target at 1.0600 very quickly yesterday. Where to now? USDCHF is always a bit of a reverse view of EURUSD, so we have 161.8% met and what looks like a corrective move overnight. In the last hour we have made a doji . The chart favours another move to the downside. We really need to break the 200 SMA at 10627 to open the way for a possible move down to 10505. A break above 10695 would negate the view

Support levels: 1.0635 10628 10600

Resistance levels: 1.0680 1.0695 1.07000

Have a great day

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